Sir if service provider have bank interest income and other interest income with its other GST payable income , in that case service provider is supposed to reverse the common credit as per rule 42 , in my view interest income of any kind is not supply nor business, pl discuss in detail

Reply—Interest received on loans given, bank interest received, which are exempted from GST are to be included in aggregate turnover.

In Rule 42 the input tax credit in respect of inputs or input services, which attract the provisions of sub-section (1) or sub-section (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the manner is prescribed.

For receiving bank account interest, no inputs are being used, so there is no need to reverse ITC, it will not fall under common input tax credit.

Also, in explanation 1(b) of Rule 43- For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate value of exempt supplies shall exclude- (b) the value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount, except in case of a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances.